-In the above table, C is consumption expenditure, I is investment, G is government expenditure, and X - M is net exports. All entries are in dollars. The equilibrium level of real GDP is
A)$2,500.
B)$2,300.
C)$2,200.
D)$2,400.

Question

-In the above table, C is consumption expenditure, I is investment, G is government expenditure, and X - M is net exports. All entries are in dollars. The equilibrium level of real GDP is
A)$2,500. 
B)$2,300. 
C)$2,200. 
D)$2,400.

Quizplus · Accepted Answer

The equilibrium level of real GDP is determined where aggregate expenditure equals total output (GDP). Aggregate expenditure is the sum of C + I + G + (X - M). The correct choice is where this sum equals the given GDP level.

-In the Above Table, C Is Consumption Expenditure, I Is